it is like they say... "many thousands..nay tens of thousands more would have
been freed.. if only those who want to be free admit openly that they are
nothing other the slaves in schackles"
MK
ocii <[EMAIL PROTECTED]> wrote:
I honestly believe true liberation, where the wealth of the country benefit
the people, is what we need not only in Uganda, but throughout Africa south of
the sahara. We have armies of illiterates who have no clue of what is going on
around them. And when people who see far talk, they only hear mumbo-jambo,
because they do not understand what one is talking about! And this is the very
problem facing African liberators! Lack of savvy population is a big hindrance
to true liberation. Question then is, how do African liberators go about this
huge obstacle?
Ocii
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Sugar war brews up Joseph Mazige JINJA The Ministry of Tourism,
Trade and Industry has drafted a bill to cool the simmering bad relationship
between sugar companies and sugar cane out growers.
The acrimony is two pronged.
Giant sugar companies; Kakira Sugar Works Ltd and the Sugar Corporation of
Uganda Ltd (Scoul) are complaining that sugar cane out growers have turned
their backs on them and now sell sugar cane to small-scale sugar dealers
despite having received from the sugar companies agricultural inputs to
facilitate their farming.
The two are also accusing GM, a new sugar firm, of poaching sugarcane from
their sponsored out-growers.
Now the companies want the government to table a bill in Parliament to zoning
off competitors.
State Minister for Trade Nelson Gagawala, said the bill is before cabinet and
will soon be tabled in parliament.
The contents of the bill were not readily available, but if Kakira and Scoul
get their way, it will spell the death of jaggaries, the relocation of GM and
create a monopoly of the two giants. They do not even pay taxes to government
and nobody regulates its operations," Kakira Sugar Works General Manager
Richard Orr told Business Power.
ENDANGERED: A young man feeds a motorised jaggery in Nakitokolo
Village as his colleagues look on. Giant sugar companies want the government to
enact a law that will make it difficult for small-scale sugar dealers to
operate. Photo by Joseph Mazige. BELOW RIGHT: A worker cuts down sugar cane in
a plantation. File Photo Kakira Sugar Works gives registered farmers tractor
services, seeds for planting and other inputs like fertilisers payable in three
instalments in a period of five years on condition that Kakira has exclusive
rights to buy sugar cane from them.
However, in what Kakira sees as 'betrayal' the farmers are selling their sugar
cane to jaggeries.
Jaggery is unhealthy and disruptive. Kakira is not able to plan for
production, Mr Orr said.
Losses
He said Kakira lost more than 600,000 tonnes of cane since 2004 causing a
financial loss of about $25 million due to the activities of jaggaries.
"Government and the investment authority should do zoning and planning for new
projects to protect the established sugar companies," Mr Orr said.
According to him, the bill will harmonise the relationship between sugar
companies, out-growers and any other investors who wish to enter into the
market.
The companies contend that the jaggeries who are small-scale sugar dealers are
illegal and have disrupted sugar production significantly.
"We fail to plan for our operations because of either the drop or increase of
cane supply from out-growers," Mr Orr said. "These people should be relocated."
At the Sugar Corporation of Uganda Ltd the story is similar.
"We are indeed affected by the jaggery people and they affect our performance,"
Scoul's General Manager Marketing Mr Sudeep Mohanty said.
However, Mr Gagawala said such complaints are "simply selfish". "We
need to cater for the needs of all [players] in the sugar industry," he said.
There are about 102 jaggeries, according to Kakira Sugar Works estimates
operating within Kakira's radius of 30km. Of these, 92 are manual or oxen
driven and the rest are motorised.
Between 2003 and 2007, at least 50 cases of out-growers selling cane to jaggery
operators were recorded at Kakira Sugar Works of which some were taken court.
Jaggery operators crush cane for distilling local gin - Waragi. The increase in
the number of jaggeries at the borders of Kakira sugarcane plantation is
attributed to the peace in northern Uganda and the banana wilt that destroyed
bananas in western Uganda.
Because of these developments, jaggery operators moved from Kamuli to Jinja
district where there is a lot of cane to distil the gin to supply in northern
and western Uganda.
In April, the sugar companies complained to the Trade and Industry ministry.
But as Mr Gagawala said: "We will take into account interests of all concerned
parties."
Kakira, the biggest employer with about 7,500 workers has over 4,500
out-growers who are paid approximately Shs2 billion per month.
Reactions
Jaggery operators who spoke to Business Power in Buyengo, Namasiga and Bunya
villages said they are not bothered about Kakira complaints.
"This is business and if their out-growers (aided/registered) opt to buy from
us they should stand the pressure," Mr Musa Maka said.
He said they [Jaggeries] pay cash to out-growers and their operations employ
hundreds of youths in the district.
"Supposing these youth were left to roam in the villages, what would happen?"
Mr Maka asked.
Mr Joshua Bamuleke whose sugarcane plantation Business Power visited in
Nakitokolo Village said the jaggaries offer a better deal than the established
sugar companies.
"At least by selling to the jaggeries, I am paid cash and I don't struggle
cutting and transporting," he said.
He said for lack of transport, most farmers find it hard to deal with Kakira
and those not registered can only sell to the sugar company through registered
farmers.
A former jaggary operator Patrick Bamwise said farmers should be free to sell
their cane where they feel the market is better.
"I don't condemn the jaggery people. If the farmers are not registered with
Kakira they are free to sell it elsewhere," he said adding that those breaching
the agreements should be punished.
GM fights
In the meantime, GM is trying hard to keep its fight with Kakira and Scoul as
limited as possible. Located in Nakibizi along the Jinja-Kampala Highway, GM is
strategically located to tap into out-growers along the way.
According to the Uganda Sugar Cane Technologists Association annual report for
2006, Kakira, Scoul and Kinyara Sugar Works in Masindi asked the ministry of
Trade to have GM Sugar Factory relocated.
"They do not have registered out-growers. What they do is to buy from the
farmers we have invested in," Mr Orr said. GM General Manager Administration
Shaileshkumar Parekh dismissed the claim saying, right from the start Kakira
and Scoul never welcomed them.
He said GM buys cane from independent farmers from Jinja, Mayuge and Mukono
districts with the approval of area LC1 Chairpersons.
"Without the LC1 letter, we are not accepting canes from farmers," he said
adding that a number of independent farmer have applied to supply the factory.
He said competition in the sugar industry is healthy because it benefits the
farmers.
He said GM is in the process of registering its own farmers.
GM has also appealed to the government to protect them from undue pressure from
competitors and asking for a law to encourage sugar cane growing because Uganda
is an agricultural land.
"This is a pilot project. We intend to start another bigger sugar project
elsewhere," he said.
As it appears the battle of the three sides is just starting but the coolant
might just be contained in the bill. A law would help quell fears and allow all
sides to operate within the stipulations of the law.
---------------------------------
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